EANS-News: Wolford reports positive earnings for the first nine months of 2014/15

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9-month report/Report on the third quarter

- Positive net earnings
- Revenues slightly below previous year
- Strategic refocussing on sound course
- Management Board team complete since January 7
- Full-year target confirmed

Vienna/Bregenz, March 13, 2015: Wolford AG, which is listed on the
Vienna Stock Exchange, generated positive net earnings of EUR 4.5
million in the first nine months of the 2014/15 financial year.
Revenues declined slightly by 1.9% to EUR 121.1 million, but EBIT
rose by nearly EUR 5 million from EUR 2.2 million to EUR 7.1 million.
EBIT adjusted for non-recurring income and expenses also improved
from EUR 2.8 million to EUR 4.1 million. The weaker development of
revenues during the first nine months resulted from the previous
closing of unprofitable points of sale and the obviously difficult
market conditions during the second quarter. In contrast, revenues in
the third quarter generally matched the previous year. The sound
improvement in earnings resulted from the steady implementation of
optimization measures and from special effects. For the full- year,
management confirms its goal to complete the operating turnaround
with positive EBIT.

Third quarter revenues at prior year Level

A relatively slow second quarter and weak November were followed by
good development during the Christmas shopping season. Revenues rose
by 4% year-on- year in December and by 2% in January. EBIT was
slightly lower than the previous year in the third quarter at EUR 3.9
million (Q3 2013/14: EUR 4.5 million), above all due to higher rental
and marketing expenses.

Stable retail Business

The development of revenues was also significantly affected by the
closing of more than 20 unprofitable points of sale during the
current and previous financial years, which reduced revenues by EUR
4.7 million. However, the Wolford-owned retail business was overall
stable during the first nine months. The online business remained on
a growth course with an increase of 17%.

In contrast, the wholesale business decreased by 4%. This decline
resulted from problems with individual retail partners and from the
Ukraine crisis and the weak Ruble, which not only had a negative
effect on Wolford's direct business in this region, but was also felt
through a sharp drop in Russian tourism to the major European cities.
Revenues for the first nine months were positively influenced by EUR
1.2 million of foreign exchange effects from the increase in the US
dollar, British pound and Swiss franc versus the euro.

Different regional developments

The development of revenues in the first nine months differed
substantially by region, in part due to the closing of individual
points of sale. Declines were recorded in Wolford's key markets of
Germany (-5%), Austria (-6%) and France (- 5%). Above all in Germany,
the fashion trade has been negatively affected by substantial
weakness in consumer spending for months - the branch reported in
part double-digit revenue declines for 21 weeks, which were
interrupted by only two weeks of growth.

Business in Wolford's largest market, the US, declined slightly
during the first nine months (-2%), but stabilized recently. Sound
revenue growth was recorded in Italy (+10%) and Spain (+10%), and
moderate growth (+4%) in Great Britain. In Central and Eastern
Europe, the Ukraine crisis led to a sharp drop in revenues (-21%).
Revenues on the Asian market rose by 13% due to the opening of new
points of sale and the expansion of the partner business as well as a
like-for- like increase in the retail business.

Positive operating earnings and solid balance sheet structure

Earnings showed sound development in the first nine months: adjusted
EBIT rose from EUR 2.8 million to EUR 4.1 million, among others due
to the sale of a lease option. ,,These results were also supported by
our steady optimization measures. We realized EUR 1.8 million of cost
savings in the first nine months through further process optimization
in product development, production and logistics", explained Chief
Financial Officer Thomas Melzer. In addition, the sale of non- core
property generated a book gain of EUR 3.4 million, which led to an
improvement of nearly EUR 5 million in EBIT from EUR 2.2 million to
EUR 7.1 million. Earnings after tax rose from EUR 1.7 million in the
previous year to EUR 4.5 million.

The balance sheet structure of the Wolford Group remains very solid.
Equity amounted to EUR 79.2 million as of January 31, 2015 (January
31, 2014: EUR 79.0 million). The equity ratio reached 53%, compared
with 55% in the previous year, and gearing equaled 20% (January 31,
2014: 19%).

Strategic refocussing on good course / Management Board team complete

Wolford continues to make significant progress with the
implementation of the strategic refocussing and recently reached an
important milestone in the reshaping of the product portfolio: "The
2015/16 fall/winter collection that was presented at the end of
January was very well received by the trade", commented Axel Dreher,
Deputy CEO, on this recent achievement.

The announced closing of unprofitable points of sale was contrasted
by the opening of new locations in key strategic cities like
Barcelona, Florence and Frankfurt. Wolford also opened a new flagship
store on Munich's Weinstrasse at the beginning of March. The complete
product line is presented on roughly 100 square meters of selling
space at this exclusive location.

Since January 7, Wolford's Management Board team is again complete -
with Ashish Sensarma as the new Chief Executive Officer who is
responsible for marketing and sales. The Management Board agrees that
Wolford must significantly strengthen its organizational set-up in
these areas. "That means we must use our strong assets - above all
our own points of sale - much more effectively in the future,"
emphasized Ashish Sensarma, Chief Executive Officer. Thisincludes,
among others, the further upgrading of shop windows and the
optimization of visual merchandising.

Goal for 2014/15 financial year confirmed

Based on results for the first nine months, the Management Board
confirms the goal to close the current financial year with positive
EBIT. 2014/15 is a year of transition, and the company's
transformation is well underway. The non- recurring income and the
means from cost savings realized through process optimization are
being invested in product development, sales and marketing to create
the foundation for future growth.

The report on the third quarter of 2014/15 is available under
company.wolford.com / Investor Relations.
http://company.wolford.com/wp-content/uploads/2015/03/Wolford_Q3-
Report_2014_15.pdf

Wolford Group Key Data

9 months 9 months
Earnings Data 05/14 - 01/15 05/13 - 01/14 Chg. in % 2013/14
Revenues in million 121.13 123.42 -2 155,87
EBITDA adjusted 1) in million 10.49 8.68 +21 7,11
EBIT adjusted 1) in million 4.09 2.80 +46 -0,97
EBIT in million 7.08 2.16 >100 -4,72
Earnings before tax in million 6.39 1.26 >100 -5,89
Earnings after tax in million 4.46 1.74 >100 -2,81
Capital expenditure in million 8.24 6.06 +36 7,87
Free cash flow in million 0.79 0.92 -14 -0,97
Employees (on average) FTE 1,567 1,563 0 1.562

Balance Sheet Data 31.01.2015 31.01.2014 Chg. in % 30.04.2014
Equity in million 79.22 78.95 0 74,38
Net debt in million 15.76 15.16 +4 17,04
Working Capital in million 39.14 35.95 +9 33,72
Balance Sheet total in million 150.51 144.72 +4 138,12
Equity ratio in % 53 55 -4 54
Gearing in % 20 19 +5 23

1) Adjusted for non-recurring income of EUR 3.37 million and non-recurring
expenses of EUR 0.38 million in the first nine months of 2014/15

On Wolford AG

Wolford AG, which is headquartered in Bregenz on Lake Constance (Austria),
operates 16 subsidiaries and markets its products in roughly 60 countries
through 270 monobrand stores (own and partner-operated), approximately 3,000
trading partners and online. The company, which has been listed on the Vienna
Stock Exchange since 1995, generated revenues of EUR155.87 million in the 2013/
14 financial year (May 1, 2013 - April 30, 2014) and has approx. 1,560
employees. Since its founding in 1950, Wolford has become a leading global
manufacturer's brand in the segment of luxury legwear, exclusive lingerie and
high quality bodywear.

Further inquiry note:
Wolford AG
Regine Petzsch
Tel.: +43 5574 690 1359
mailto:investor@wolford.com
Web: company.wolford.com

end of announcement euro adhoc
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company: Wolford Aktiengesellschaft
Wolfordstrasse 1
A-6900 Bregenz
phone: +43 (0) 5574 690-1268
FAX: +43 (0) 5574 690-1219
mail: investor@wolford.com
WWW: company.wolford.com
sector: Textiles & Clothing
ISIN: AT0000834007
indexes: ATX Prime, ATX Global Players
stockmarkets: free trade: Frankfurt, regulated dealing: Wien, ADR: New York
language: English